We’re coming in for a landing on our alphabetic run-down of behavioral biases. Today, we’ll present the final line-up: sunk cost fallacy and tracking error regret. Sunk Cost Fallacy What is it? Sunk
Continue reading...So many financial behavioral biases, so little time! Today, let’s take a few minutes to cover our next batch of biases: overconfidence, pattern recognition, and recency. Overconfidence What is it? No
Continue reading...There are so many investment-impacting behavioral biases, we could probably identify at least one for nearly every letter of the alphabet. Today, we’ll continue with the most significant ones by looking
Continue reading...Welcome back to our “ABCs of Behavioral Biases.” Today, we’ll get started by introducing you to four self-inflicted biases that knock a number of investors off-course: anchoring, blind spot, confirmation,
Continue reading...By now, you’ve probably heard the news: Your own behavioral biases are often the greatest threat to your financial well-being. As investors, we leap before we look. We stay when we should go. We cringe
Continue reading...Inflation is the rate at which money loses its purchasing power over time. As you might guess, there are many ways to measure such a squishy figure. There are various economic sectors, such as energy,
Continue reading...After last year’s economic shocks, we shouldn’t be surprised to see prices rebounding. But the potential for inflation is one among many factors investors take into account when agreeing on a price
Continue reading...The Federal Reserve has been suggesting rising rates should wane. We hope they’re right. But we also know the future remains uncharted. Nearly any outcome is possible, and none is inevitable. This means
Continue reading...Recent headlines have been reporting a noticeable uptick in inflation. Superlatives like “best” and “worst” grab the most attention, so outlets have been abuzz with reports of how a 5% May consumer
Continue reading...The prediction game may be a losing one for many investors, and each year there are published reports that highlight the difficulties conventional managers face.
Continue reading...As companies grow to become some of the largest firms trading on the US stock market, the returns that push them there can be impressive. But not long after joining the Top 10 largest by market cap, these
Continue reading...Models are approximations of the world. They are simplifications of reality. Models can be useful for gaining insights that help us make good decisions. But they can also be dangerous if someone is overconfident
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